Good news for us First Time Home buyers because FHOG supposed to be ending on June 30, 2009 instead it was extended and an increased bonus for Victoria area for off the plan or newly built homes… It is 26k till June 30, 2009 but it will increase into 32k starting July 1, 2009 till so the best  logical thing to do is to wait and do the contract signing for the building contract after June 30, 2009 to be able to get the 32k.

Here are the detailed information below regarding the FHOG and schedules:

Australian Government Budget 2009-2010 – First Home Owner’s Boost extended

The Australian Government has announced a six month extension to the First Home Owner’s Boost Scheme as part of it’s 2009-2010 Budget initiatives.

First home buyers entering into contracts between 1 July 2009 and 30 September 2009 will continue to be eligible for the Boost of $7,000 for the purchase of an established home, and $14,000 for the purchase of a new home.

The Boost will halve for purchasers that enter into contracts between 1 October 2009 and 31 December 2009. This means that purchasers of established homes will be eligible for $3,500 and purchasers of new homes will be eligible for $7,000.

The extension to the Boost comes one week after the changes announced by the Victorian Government in regard to the First Home Bonus (see below).

First Home Bonus Increased for new homebuyers

The Victorian Government has announced an increase in the First Home Bonus for new homebuyers.

From July 1 2009 the First Home Bonus will entitle eligible home buyers to a payment of $2,000 for established homes or $11,000 for new homes.

The Bonus previously provided $3,000 for established homes and $5,000 for new homes. The First Home Bonus will be available for the purchase of homes under $600,000.

Premier John Brumby said today the new package was aimed at helping Victorian families into their own homes sooner by offering $22,500 for first home buyers purchasing a new home in regional Victoria, $18,000 for a new home in metro Melbourne and $9000 for an existing home as of 1 July this year.

VICTORIAN FIRST HOME BONUS INCREASED FOR NEW HOMES
An extension of the Victorian Government’s First Home Owner Scheme and an increase in the First Home Bonus for new homes will create thousands of jobs, boost the economy and make buying a first home even more affordable for Victorians.
Premier John Brumby said today the new package was aimed at helping Victorian families into their own homes sooner by offering $22,500 for first home buyers purchasing a new home in regional Victoria, $18,000 for a new home in metro Melbourne and $9000 for an existing home as of 1 July this year.
“The Victorian Government continues to make it easier for Victorians to buy a home and raise a family,” Mr Brumby said
“The changes to the First Home Bonus will create more homes and more jobs.
“The Housing Industry Association has estimated the boost to the first home owner’s package for new homes would secure an extra 3600 jobs over the next three years, generate around $1.3 billion of additional housing activity and result in an extra 4300 homes being built.
“It will build on this Government’s successful existing bonus scheme that has resulted in Victoria recording almost one in three housing starts in Australia in the December quarter and almost 32,000 people purchasing a first home in Victoria in the last 12 months. About 10,000 of these were in the three months to February this year alone.”
The changes to the size of the bonus will be coupled with an increase to the cap on the Bonus which now means that first home buyers purchasing a property up to the value of $600,000 will now be eligible for the Bonus.
Mr Lenders said the Victorian Government would invest $125 million to boost the scheme for an additional year.
“The best driver of affordable housing for both homebuyers and renters is a good supply of housing and this package encourages people to build new homes in Victoria,” Mr Lenders said.
“We have already paid over $3.2 billion worth of grants to help Victorians into their first homes since the scheme began.
“This increase will also help to create jobs, stimulate the economy and lessen the effects of the Global Financial Crisis.
“This is one of the most generous grants package available to first home buyers of newly constructed homes in any Australian State or Territory and now more people will be eligible for out fantastic bonus.”

First Home Buyers – Overview – What amounts are available?

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If you are a first home buyer you may be entitled to receive the First Home Owner Grant (the Grant), the First Home Bonus (the Bonus), and the First Home Owner Boost (the Boost). A regional bonus (in addition to the above) is also available for those entering into contracts between 6 May 2008 and 30 June 2010 (for the purchase or construction of a new home in a regional municipality in Victoria). Entitlements under the Boost Scheme are only available for those entering into contracts (to buy an established home or buy/build a new home) between 14 October 2008 and 31 December 2009. The following provides an overview of the amounts that a first home buyer may be eligible to receive under the different schemes. First Home Owner Grant The First Home Owner Grant provides first home buyers that satisfy the eligibility criteria with a $7000 grant. This $7000 grant is not means-tested nor is it restricted by the price of the property for contracts entered into up to 30 June 2009. For contracts entered into from 1 January 2010 to 30 Jun 2010 the value of the property must not exceed $600,000. The Grant is an on-going scheme with no end date yet specified. Further information about the First Home Owner Grant and eligibility criteria First Home Bonus 1 May 2004 to 30 June 2009 (Contract Date) If you are eligible to receive the Grant, you may also be entitled to receive an additional payment of $3,000 (for established homes) or $5,000 (for new homes only), which is known as the First Home Bonus (the Bonus). To be eligible to receive the Bonus, the purchase price of the property must not exceed $500,000. 1 July 2009 to 30 June 2010 (Contract Date) If you are eligible to receive the Grant, you may also be entitled to receive an additional payment of $2,000 (for established homes) or $11,000 (for new homes only), which is known as the First Home Bonus (the Bonus). To be eligible to receive the Bonus, the purchase price of the property must not exceed $600,000. Further information about the First Home Bonus. Regional Bonus 6 May 2008 to 30 June 2009 (Contract Date) For contracts entered into for the purchase or construction of a new home in a regional municipality in Victoria, an additional $3000 bonus is also available (in addition to the $5000 bonus). 1 July 2009 to 30 June 2010 (Contract Date) For contracts entered into for the purchase or construction of a new home in a regional municipality in Victoria, an additional $4500 bonus is also available (in addition to the $11,000 bonus). Further information about the Regional Bonus. First Home Owner Boost The First Home Owner Boost, which was launched by the Australian Government, supplements the Victorian Government funded First Home Owner Grant of $7,000. The Boost provides: 14 October 2008 to 30 September 2009 (Contract Date) an extra $7,000 to first home buyers who purchase an established home; and an extra $14,000 to first home buyers who build a new home or purchase a newly constructed home. 1 October 2009 to 31 December 2009 (Contract Date) an extra $3,500 to first home buyers who purchase an established home; and an extra $7,000 to first home buyers who build a new home or purchase a newly constructed home. Further information about the Boost A table, which sets out the different amounts that first home buyers in Victoria may be eligible for, is shown below. Contract Date Conditions First Home Owner Grant (FHOG) New First Home Owner Boost First Home Bonus # First Home Owner Regional Bonus # Total From 1 January 2010 to 30 June 2010 Note: This information has been taken from the Premier’s announcement on 6/5/2009 and the 2009-2010 Federal Budget. This information is subject to legislative approval. Established homes only $7,000* $0.00 $2,000 $0.00 $9,000 Newly constructed homes in Metropolitan Victoria only $7,000* $0.00 $11,000 $0.00 $18,000 Newly constructed homes in Regional Victoria only $7,000* $0.00 $11,000 $4,500 $22,500 From 1 October 2009 to 31 December 2009 Note: This information has been taken from the Premier’s announcement on 6/5/2009 and the 2009-2010 Federal Budget. This information is subject to legislative approval. Established homes only $7,000 $3,500 $2,000 $0.00 $12,500 Newly constructed homes in Metropolitan Victoria only $7,000 $7,000 $11,000 $0.00 $25,000 Newly constructed homes in Regional Victoria only $7,000 $7,000 $11,000 $4,500 $29,500 From 1 July 2009 to 30 September 2009 Note: This information has been taken from the Premier’s announcement on 6/5/2009 and the 2009-2010 Federal Budget. This information is subject to legislative approval. Established homes only $7,000 $7,000 $2,000 $0.00 $16,000 Newly constructed homes in Metropolitan Victoria only $7,000 $14,000 $11,000 $0.00 $32,000 Newly constructed homes in Regional Victoria only $7,000 $14,000 $11,000 $4,500 $36,500 From 14 October 2008 to 30 June 2009 Established homes only $7,000 $7,000 $3,000 $0.00 $17,000 Newly constructed homes in Metropolitan Victoria only $7,000 $14,000 $5,000 $0.00 $26,000 Newly constructed homes in Regional Victoria only $7,000 $14,000 $5,000 $3,000 $29,000 From 6 May 2008 to 13 October 2008 Established homes only $7,000 $0.00 $3,000 $0.00 $10,000 New homes in Metropolitan Victoria only $7,000 $0.00 $5,000 $0.00 $12,000 New homes in Regional Victoria only $7,000 $0.00 $5,000 $3,000 $15,000 From 1 January 2007 to 5 May 2008 Established homes only $7,000 $0.00 $3,000 $0.00 $10,000 New homes only $7,000 $0.00 $5,000 $0.00 $12,000 From 1 January 2006 to 31 December 2006 Established and New homes $7,000 $0.00 $3,000 $0.00 $10,000 From 1 May 2004 to 31 December 2005 Established and New homes $7,000 $0.00 $5,000 $0.00 $12,000 * Additional Conditions: To be eligible to receive the FHOG, for contracts entered into between 1 January 2010 and 30 June 2010, the value of the property must not exceed $600,000 # Additional Condition: To be eligible to receive the Bonus and Regional Bonus for contracts entered into up to 30 June 2009, the value of the property must not exceed $500,000. For contracts entered into between 1 July 2009 to 30 June 2010, the value of the property must not exceed $600,000 The information provided in the above table is to be used as a guide only.

Joint Media Release with
The Prime Minister

$42 Billion Nation Building and Jobs Plan

The Rudd Government today announced a $42 billion Nation Building and Jobs Plan to support jobs and invest in future long term economic growth.

This historic long term and targeted Nation Building and Jobs Plan is a further decisive step in the Government’s response to the severe global recession.

Treasury estimates that today’s Nation Building and Jobs Plan will support up to 90,000 jobs in 2008-09 and 2009-10.

Key measures funded by today’s Nation Building and Jobs Plan include:

• Free ceiling insulation for around 2.7 million Australian homes

• Build or upgrade a building in every one of Australia’s 9,540 schools

• Build more than 20,000 new social and defence homes

• $950 one off cash payments to eligible families, single workers, students, drought effected farmers and others

• A temporary business investment tax break for small and general businesses buying eligible assets

• Significantly increase funding for local community infrastructure and local road projects

The initiatives in the Nation Building and Jobs Plan will provide a boost to economic growth of around ½ per cent of GDP in 2008-09 and around ¾ per cent to 1 per cent of GDP in 2009-10.

By investing in jobs and long term economic growth the Plan strikes the right balance between immediate support for jobs now, and delivering the long term investments needed to strengthen future economic growth.

For every $1 spent providing immediate stimulus to the economy the Government has invested more than $2 on long term investments that will generate future economic growth.

The Global Recession

The world is now caught in the worst economic crisis since the Second World War, a crisis that has delivered recessions in the United States, the United Kingdom, Japan and the Eurozone.

The IMF is now forecasting advanced economies to contract by 2 per cent collectively in 2009. Growth has also slowed dramatically in key emerging economies, China in particular. All these factors have caused a rapid unwinding of the mining boom in Australia, with major consequences for Australian revenues, growth and jobs.

In fact the global recession has already pushed the Budget into deficit, even before policy action is taken. Decisive action is now required to strengthen the Australian economy and in these circumstances, a temporary deficit is the only responsible course of action to support jobs and economic growth.

National action alone cannot reverse the global forces buffeting the Australian economy; these global forces can only be fully turned around with a coordinate global response.

Long Term Nation Building Investments

Direct investment by the Government in goods and services has significant scope to boost economic growth and productivity and support jobs because it adds directly to demand. There are five major components of the Nation Building and Jobs plan.

Building the Education Revolution:

• Build or upgrade large scale infrastructure, such as libraries and halls in every primary school, special school, and K-12s school in Australia.

• Build 500 new science laboratories and language learning centres in schools that can demonstrate need.

• Up to $200,000 to every Australian school for maintenance and renewal of school buildings.

Energy Efficient Homes:

• Installing ceiling insulation in 2.7 million Australian homes which will cut around $200 per year off the energy bills of these households

• Reduce greenhouse gas emissions by around 49.4 million tonnes by 2020, the equivalent of taking more than 1 million cars off the road

20,000 Social and Defence Homes

• Build 20,000 new social housing dwellings and 802 new houses for the Australian Defence Force.

• Urgent maintenance to upgrade around 2,500 vacant social houses

Small Businesses and General Business Tax Break

• A 30 cent in every dollar investment tax break for small and general businesses buying eligible assets.

Black Spots, Boom Gates, Regional Roads and Community Infrastructure

• 350 additional projects in the Black Spot Program and the installation of around 200 new boom gates at high risk rail crossings

• $650 million funding boost for local community infrastructure and maintenance on Australia’s national highways

Immediate Stimulus to Support Jobs and Economic Growth

Targeted bonuses to low and middle income households will provide an immediate stimulus to the economy and support Australian jobs.

In conjunction with the payments delivered as part of the $10.4 billion Economic Security Strategy announced in October, these measures have been designed to assist those groups most affected by the flow-on effects of the global recession.

The five one off cash bonuses includes in today’s plan are the:

• Tax Bonus for Working Australians of up to $950 paid to every eligible Australian worker earning $100,000 or less. This will support up to 8.7 million individuals.
• $950 Single Income Family Bonus to support 1.5 million families with one main income earner.
• $950 Farmer’s Hardship Bonus paid to around 21,500 drought affected farmers and farm dependent small business owners receiving exceptional circumstances related income support.
• $950 per child Back to School Bonus to support 2.8 million children from low- and middle-income families.
• $950 Training and Learning Bonus paid to students and people outside of the workforce returning to study to help with the costs of education and training.
• $42 billion Nation Building and Jobs Plan builds on the stimulus measures already in place to support economic activity and jobs.
• measures already implemented by the Rudd Government include the $10.4 billion Economic Security Strategy, the $300 million program to build local community infrastructure, the $15.2 billion COAG funding package and the Nation Building Package announced in December 2008.

For the past few weeks i was monitoring the petrol prices go up and down from au$1.49  to 1.40.. then noticed last few days went down to 1.35 so i fueled up the gas tank of my car on tuesday around 2am but I usually fill it up on wednesday because every wednesday of the week petrol prices is always the cheapest I dont know the reason why but it’s a proven observation.. the next day which is wednesday it went down to 1.34 haha.. so I will really stick to my weekly schedule to fuel up every wednesday because it really makes a difference if we are going to fuel up 40-50 litres of petrol every cents counts.. theres news that petrol will go lower to 1.20 and maybe lower.. see below the details of the news.

Petrol prices set to fall: RACV
Tuesday October 28, 2008, 3:08 pm

The RACV is predicting petrol prices will fall to as low as $1.20 per litre over the next few weeks.The price of crude oil has fallen sharply since the start of the global financial crisis.The RACV’s David Cumming says he expects petrol station operators to pass on their savings to motorists soon.
He said the Singapore wholesale price has fallen 15 cents in the last nine days.
“This week will be reasonable, but next week will be far better, we’ll definitely be down into the dollar thirty range, and the week after I’m hopeful we might be into the dollar twenty range, so prices are on their way down.”

Australian banks recently lowered their interest rates to lure and attract home buyers or investors to loan.. before the crisis.. home loan rate was roughly around 9.25% if i remembered it correctly and now the rate is 8.5% average which will go down further… possibly into 6% to 7% but its still just a hunch or hearsay/prediction… so some people are waiting for the interest rates to go down then buy and invest on a home+land package.. to be honest it is really a tempting offer to buy/invest.. low interest rates plus a first home grant from the government of au$21k but need to consider some factors like are we capable enough to pay the loan which means must have a stable job or have other self generating income/passive income aand like which banks gives a better offer with no hidden charges whatsoever so must do our homework before jumping to the bandwagon.. I have plans to do that but i am still analyzing the situation thorougly before doing so

Here are some news details published on October 20, 2008 to give you an insight on what is presently happening…
More cuts in lending rates are expected as the big banks switch their focus from the hard-pressed housing market to the wider business sector.
National Australia Bank yesterday became the second of the Big Four banks in three days to announce another 0.2 of a percentage point drop in its interest rates following the move by ANZ on Friday.
ANZ cut its rates by 0.25%, taking the total of its most recent reductions to slightly more than the surprise economy-boosting 1 percentage point fall announced by the Reserve Bank of Australia two weeks ago.
But in a move that reflects growing concern among political, economic and business leaders, NAB said its lower interest rate would apply not only to its mortgages but also to businesses and farming — two sectors the bank counts as its major customers.
For hard-pressed home owners, the mortgage rate will drop to 8.36% from next Monday in a move that will take the savings on the repayments on an average $250,000 loan to more than $200 a month since the RBA’s reduction.
However, NAB head of Australian operations, Ahmed Fahour, underlined the need to extend the impact of the lower rates to the wider community to try to prevent the slowdown becoming worse.
“We will do everything we can, while still acting responsibly, to help our customers get through these current challenges,” Mr Fahour said yesterday.
The decisions by NAB and ANZ will put increasing pressure on the other two big banks, Commonwealth and Westpac, which are expected to push through matching reductions in the next few days.
The move comes as ANZ and NAB are this week expected each to report disappointing full-year earnings after being hit with hefty write-downs.
NAB, which has suffered an $830 million hit caused by its exposure to complex investments in US subprime housing loans, has already flagged that its profit will be no higher than $3.9 billion. The bank has brought forward its results to tomorrow, in a decision that may be linked to plans to raise up to $2.5 billion to bolster its balance sheet.
The write-downs suffered on various investment portfolios detailed to date are likely to translate to an 11% fall in full-year earnings to the end of September.
ANZ chief executive Michael Smith, will mark his first anniversary at the bank by reporting an even larger drop in profits.
ANZ’s high-profile problems with two failed broking firms, Opes Prime and Primebroker, and the $1.6 billion it has set aside to cover bad debts in its corporate loan book will result in the bottom line taking an $800 million hit.
According to Credit Suisse analysts, the bank should unveil $3.14 billion profit on Thursday compared with last year’s $3.92 billion.
The profit slide will squeeze Mr Smith’s ambitious target to double profit by 2012.
Mr Smith set this deadline last December, when the bank was headed for a $4 billion-plus outcome.
Westpac is expected to round off the big bank reporting season next week, with analysts anticipating an annual profit of $3.74 billion.

Commonwealth Bank drops mortgage rates
Monday October 20, 2008, 6:41 pm
Commonwealth Bank of Australia (CBA) has dropped its interest rates on both variable and fixed home loans after its rivals National Australia Bank, ANZ Banking Group and Aussie Home Loans all reduced their rates over the weekend.
CBA will reduce its standard variable rate home loan by 21 basis points to 8.32 per cent, and its basic variable home loan to 7.81 per cent, the bank said in a statement.
The new rates apply to both new and existing customers and will take effect from Thursday October 30.
CBA also dropped interest rates on fixed home loans by up to 40 basis points for new customers, also effective from October 30.
No change has been made to a one-year fixed rate home loan.
Reductions apply for terms from three years, with the three-year fixed home loan reduced by 40 basis points to 7.29 per cent.
The changes are the result of a reduction in the bank’s cost of funding over the past week, group executive of Retail Banking Services Ross McEwan said.
“We have seen some reduction in our cost of funding over the past week and as Australia’s biggest lender, the Commonwealth Bank is committed to remaining extremely competitive in the mortgage market,” he said.
CBA’s one-year guaranteed fixed home loan rate remains at 7.09 per cent.
This product operates like a variable loan but includes the benefits of an offset option and mortgage interest saver (redraw) option.
CBA said the move was made to remain competitive with its rivals.
Australia’s big banks have entered into a price war on mortgages over the past three days after the ANZ Banking Group Ltd on Friday announced the first move on rates independently of the Reserve Bank of Australia in a decade.
ANZ dropped its interest rates on variable home loans by 25 basis points to 8.32 per cent for new and existing customers, effective from October 27.
National Australia Bank (NAB) announced on Sunday it was dropping its standard variable home loan rate by 20 basis points to 8.36 per cent.
The 0.2 percentage point cut would apply also to business loans, and some rates on fixed mortgages would be reduced by 0.3 percentage points, NAB said in a statement.
NAB’s one-year fixed home loan was cut by 30 basis points to 6.99 per cent.
NAB’s announcement came hot on the heels of Aussie Home Loan’s decision on Saturday to drop its rate on variable home loans for first home buyers by 30 basis points to 7.79 per cent.
Aussie Home Loans reduced interest rates for fixed home loans and will review its loan rates for new and existing customers, in line with its funding requirements, managing director John Symond told AAP.
The move by CBA matches ANZ’s standard variable rate as the lowest on offer among lenders in the banking sector.
Rates on standard variable mortgages from Australia’s major lenders now stand at 8.32 per cent at CBA and ANZ, 8.36 per cent at National Australia Bank, 8.56 per cent at Westpac, 8.57 per cent at St George Bank, and 8.6 per cent at Bendigo and Adelaide Bank.